Borrowing money without proving the size of your own income is almost impossible today. If you try something like this at the bank, the clerk will say goodbye to you in a very short time. And with just one meaningful explanation. It is just the confirmation of the amount of income is one of the most important data counting in the overall creditworthiness of the client.
Loans without proof of income? Do they still exist?
If you really have a minimum or irregular source of income, then in any case, you must contact a non-banking provider. It only offers you something like loans without proof of income. These are products for which the creditworthiness of the client is verified by other means than by looking at the amount of monthly earnings. Typical examples are verification of debt, checking the register of defaulters and so on. The absence of proof of income can often be substituted by the guarantor and co-applicant.
Given the stricter conditions in verifying the applicant’s creditworthiness, it is understandable that loans without proof of income are of a rather short-term nature. You must also bear in mind that most of them are linked to certain pitfalls.
Excessive size of charges
When selecting a loan without proof of income, the first index finger raised should relate to the size of the fees. Beware what the non-banking company will charge you. For many providers, this is the area that they earn quite a lot. It is typically a considerable fee to extend the due date or defer payment for a certain period. For selected companies, it can be in the order of hundreds of crowns for such an action, which will significantly increase the total cost of such a disadvantageous loan.
Keep an eye on the size of the fees even for the smallest benefits, which are usually completely free at banks. This includes keeping a credit account, an extraordinary installment fee, early repayment and other things.
Calculate all credit costs
Many non-banking market experts look at the size of the interest rate when choosing a loan without proof of income and say that such interest is acceptable to them. He signs the contract and then wonders how high the installments are or how much he will overpay. This bait has a relatively simple explanation.
There is no interest as interest
There is no interest as interest. Remember that very quickly. The classical interest rate may not be as meaningful as it seems at first glance. If you want to choose the credit product objectively and correctly, always be interested in the size of the APR value within the given offers. And what is hidden under this acronym?
This is the annual percentage rate of charge. It differs from current interest in that it includes substantially all the associated costs of the loan without proof of income. That means even the less obvious ones that you usually come across late. It is with this parameter that you will be able to evaluate with certainty the profitability of the selected loan. At the beginning of everything, however, accept that loans without proof of income are less advantageous in nature than any other loans, let alone those in the bank.
The terms and conditions are the most important
Both of the above advice, which can become quite unpleasant pitfalls, complements the latest information that closes the imaginary circle. These are business conditions and contracts. Documents that you must read in any case, even if they have lots of pages. Many non-bank providers discourage customers from reviewing these documents by having ten or more letters of contract. You must also look at the clear formulation of important parts. Simply put, you have to understand everything and if not, ask.
It is in the contracts you uncover any pitfalls. You only need to sign a document that shows how much money you are borrowing, when you have to return it, and how much you will actually overpay. Only then do you have the chance to find acceptable loans without proof of income.